Effective October 1, 1991, the sale at retail or use of employment service services goes through tax. (1) An employe reporting to operate at a place in this Commonwealth undergoes tax. (2) An employe reporting to work at a place outside of this Commonwealth is exempt to tax, unless the employe is designated to work in this Commonwealth. (3) If the employe lies in this Commonwealth, it is presumed that the work company service goes through tax unless paperwork supports the reporting to a place beyond this Commonwealth. (c) Examples of taxable services. The following are examples of taxable employment agency services: (1) A Pennsylvania resident contacts a Pennsylvania supplier and is placed with a company at a location in this Commonwealth. (2) A Pennsylvania resident contacts an Ohio supplier and is put with an employer at an area in this Commonwealth. (3) A Pennsylvania company contacts a supplier outside this Commonwealth and accepts an employe for its area in this Commonwealth. (4) A New York resident contacts a New york city vendor and is put with an employer at an area in this Commonwealth. (5) A Pennsylvania vendor paid on a hourly rate interviews and recommends a prospective employe to an employer. (d) Examples of services which are not work company services. The following are examples of services which are not employment service services: (1) A Pennsylvania resident contacts a Pennsylvania vendor and is put with a company at a place beyond this Commonwealth. (2) A Pennsylvania resident contacts a New York vendor and is positioned with an employer in New Jersey. (3) A New york city resident contacts a Pennsylvania supplier and is placed with an employer at an area in New york city. (4) A Pennsylvania employer contacts a vendor beyond this Commonwealth and accepts an employe for its out-of-State location. (e) Purchase cost. (1) Effective October 1, 1991, through December 31, 1991, the purchase rate of employment agency services based on tax is the gross charge. (2) Effective January 1, 1992, the purchase price of employment service services based on tax is the service charge if the employe costs are individually stated; otherwise, the gross cost is subject to tax. (3) If the purchase cost is canceled or renegotiated, tax is due on the adjusted purchase cost. If a change to the tax happens, the vendor is permitted to balance out the modification versus present tax liabilities. (4) If the purchase cost is paid on an installation basis, the tax is due on the full purchase rate and is payable at the time the purchaser accepts the agreement or within thirty days of approval of the agreement. (f) Exclusions. (1) Employment agency services are exempt if bought by qualified charitable organizations, volunteer fire companies, spiritual organizations and not-for-profit educational organizations, except if used in an unassociated trade or service. The services are also exempt if acquired by the Federal federal government or its instrumentalities; or the Commonwealth, its instrumentalities or subdivisions including public school districts. The manufacturing, mining, processing, public energy, farming, dairying, farming, cultivation or floriculture exemption does not use. (2) Employment services offered by theatrical employment companies or movement photo casting bureaus. (3) Farm labor. (4) A supplier of employment company services may declare the resale exemption upon its purchase of concrete individual property which is transferred to its purchaser or a third party in the performance of its employment service services. The vendor may also acquire employment company services from another company which the supplier resells to its consumer. The vendor might not declare the resale exemption upon its purchase of administrative supplies or the purchase of another taxable service which it may use in the efficiency of its employment service services.
Source

The provisions of this § 60.5 embraced January 8, 1993, effective January 9, 1993, 23 Pa. B. 182.

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